Range Resources

[dan_s]

Range Resources (RRC) announced today that the company’s proved reserves have increased to 10.3 trillion cubic feet equivalent (Tcfe), an increase of 26%. In its press release, RRC also said it replaced 581% of production in 2014 from drilling.

[dan_s]

The company also announced that proved developed producing reserves increased 876 billion cubic feet equivalent (Bcfe), or 22% year-over-year, while proved developed reserves increased 1,157 Bcfe, or 28% year-over-year. Year-end 2014 proved reserves by volume were 67% natural gas, 30% natural gas liquids and 3% crude oil and condensate.

Commenting on Range’s 2014 proved reserves, Jeff Ventura, Range’s Chairman and CEO said, “In 2014 we achieved per share, debt-adjusted growth in both production and reserves of 20% or more. This is the eighth consecutive year to have double-digit growth in these two key metrics.”

[dan_s]

An updated Net Income & Cash Flow Forecast model for RRC has been posted under the Sweet 16 tab.

My valuation is $73.20/share.

This is a "gasser". 80% of 2015 oil production is hedged with a SWAP at $90.57, so it has very little exposure to the decline in oil prices. See details on hedges at the bottom of the forecast model.

[ChuckGeb]

I understand they substantially cut their original capex budget without a cut in production growth. Very good sign.

[dan_s]

Before the budget cut RRC said 2015 production growth would be 20% to 25%. Now they are saying 20%. Yes, it is a very good sign and a reason that I keep RRC in the Sweet 16 even though I am bearish on natural gas for 2015. This is a "World Class" company.